Lithia announces biggest acquisition in its history

Lithia Motors announced Sunday a $362.5 million dealership acquisition that will open up metropolitan markets on the East Coast and Southern California.

Lithia Motors announced Sunday a $362.5 million dealership acquisition that will open up metropolitan markets on the East Coast and Southern California.

The Medford-based company with 101 stores has entered into a deal to acquire New Jersey-based DCH Auto Group Limited , which has 27 stores.

Sid DeBoer, chairman of Lithia, said it was the single largest acquisition in Lithia's history.

"I think it may be one of the single biggest acquisitions in the sector," DeBoer. "Now we have a whole number of people who will help us grow into the east."

He said the purchase, which should close in the fourth quarter of 2014, is expected to increase earning per share from about 12 cents to 14 cents. Next year, earnings should increase from 65 cents to 75 cents, he said.